Ageing index and dependency ratio are demographic indicators used to understand the structure and dynamics of a population. While both indicators provide insights into the age composition of a population, they have different focuses and interpretations. The following table presents a comparison between ageing index and dependency ratio:
| Feature | Ageing Index | Dependency Ratio |
|---|---|---|
| Focus | Measures the proportion of older people in a population relative to the working-age population | Measures the dependency of the non-working-age population (young and elderly) on the working-age population |
| Calculation | Calculated by dividing the number of people aged 65 and above by the number of people aged 15-64, multiplied by 100 | Calculated by dividing the sum of the population aged 0-14 and 65 and above by the population aged 15-64, multiplied by 100 |
| Interpretation | Reflects the potential challenges and implications of an ageing population, such as increased healthcare needs and changes in labor market dynamics | Reflects the burden on the working-age population to support and provide for the non-working-age population |
| Population Structure | Higher ageing index indicates a larger proportion of older individuals relative to the working-age population, suggesting a potential demographic shift towards an older population | Higher dependency ratio indicates a larger proportion of dependent individuals (young and elderly) relative to the working-age population, indicating a potential burden on the working-age population |
| Policy Implications | Highlights the need for social and economic policies to address the needs and well-being of older individuals, such as healthcare and pension systems | Indicates the potential strain on resources and labor force participation, influencing policies related to education, social welfare, and economic planning |
| Population Dynamics | Reflects changes in the age composition of a population over time, providing insights into population ageing trends | Reflects the interdependence between different age groups within a population, influencing social and economic dynamics |
Conclusion: Ageing index and dependency ratio are important demographic indicators used to assess the age structure and dependency dynamics within a population. The ageing index focuses on the proportion of older individuals relative to the working-age population, highlighting potential challenges associated with an ageing population. In contrast, the dependency ratio measures the burden of the non-working-age population on the working-age population, reflecting the interdependence between age groups. Both indicators provide valuable insights for policy planning, resource allocation, and social and economic considerations. Understanding the differences between ageing index and dependency ratio helps in analyzing population dynamics and developing appropriate policies and strategies to address the needs and implications of changing age structures.
